North Seattle Community College

1. North Seattle Community College FY 2007-2008 Budget Presentation June 11, 2007

2. Key Points • FTE’s reduced by 312 Last FY • Total budget reduction $1.2 mil • $500K cut July 1, 2006 • $763,000 cut July 1, 2007 • Tenure buyout successful, but • Need additional reductions or more $

3. Key Points cont. • Hit 98% of FTE target FY 06-07 • Target 3,795 FTE, hit 3,721 • Can count international students this yr. • Hit 105.5% with international counted • NSCC has $460K reserve account

4. Key Points Cont. • Majority of $ from North’s budget cut going to South; some to Central and SVI

5. Brief Financial History • Fiscal Yr. 99-00 ($1,333,131) Deficit • Fiscal Yr. 00-01 $493,556 Balance • Fiscal Yr. 01-02 $529,192 Balance • Fiscal Yr. 02-03 $1,052,326 Balance • Excess enrollment $194,508 • Excess tuition $99,342

6. Financial History cont. • Fiscal Year 03-04 $1,361,176 Balance Incl. Excess Tuition $354,625 Incl. Excess Enrollment $123,188 • Fiscal Year 04-05 $924,636 • Fiscal Year 05-06 $176,410

7. Budget Process for FY 07-08 • BPT, College Council, Executive Team working together (process continues) • Used “two bucket” process • Asked for “Flat” budget by macro unit • Unmet needs process (one time funds) Budget development still in progress • Carry-forward funds still unknown • Had only $176,000 in CF last fiscal yr.

8. Budget Process Cont. • Budget development principles approved by College Council/BPT June 7, 2006 • $1.2 Mil &FTE reduction announced at all-college meeting on June 13, 2006 • Met with College Council on March 20 and May 1, 2007 to discuss budget process

9. College Council Members

10. C.C. Members cont.

11. Budget Planning Team

12. BPT Members cont.

13. BPT Sub-Committee

14. BPT Sub-committee • Worked hard! Held many meetings • Overriding Recommendation • The college should develop and implement a well articulated planning process for adding or eliminating instructional programs. This program viability process should be integrated with other planning initiatives at the college.

15. BPT Sub-committee • After a lot of number crunching and using different analysis techniques, we are short! • $554,384 for faculty S & B • $202,005 tenure buyout costs • Don’t Panic!

16. Sub-committee cont. • Specific recommendation: • The college should balance the currently projected 2007-08 operating budget deficit through a combination of the following: • Reduce spending • Reallocate existing funding • Increase available funding

17. Recommendations cont. • Reduce Instructional Operating Spending by Separating Entrepreneurial/Experimental Programs • Support these programs from non-operating or temporary funds until proven • Create separate instructional budget for this purpose (this would save $203,455) • Radiology Technology (save $125K)

18. Recommendations Cont. • Reduce spending through enrollment management • Potential savings from eliminating some classes with 10 or fewer students • Would save $262,000

19. Recommendations Cont. • Reallocation of existing funding: • Continuing Ed. $50,000 • Education fund $12,500

20. Specific Recommendations • Add $100K more from Int’l revenue • Add $25K from Running Start • Reduce contingency reserve by $100K; different than “true” reserve • Tap select fund balances $50K

23. How Did the Process Go?

24. Not Well!

25. College Failed!

26. What Happened? • Third Category emerged! • Requests for new positions • Increases in existing budgets • Unmet needs S/B one-time expenditures • Requests $1 mil over last year

27. The Third Process-Weed or Flower?

28. The Third Process • Needs that are ongoing • New positions • Position reallocations (upgrades) • Restoration of funds cut in past years • Cover costs that are escalating

29. Who Did Good Job on Request? • Student Services

30. Who Else Did Good Job? • Education Fund A

31. Who Else? • Library and Media A

32. What’s Next? • Receive initial allocation from District • Stick to “flat budget” requests • Finalize total resource availability • Prioritize unmet needs and fund what we can • Prioritize the “3rd process” list, fund by reallocating $ and using new money

33. Initial Budget Allocation • Several different budgets from Olympia • New biennium 2007-09 • Tuition increase 2% (credits 11 to 25) • 1% tuition increase budgeted by SCCD • 1% tuition backfill

34. Initial Budget Allocation cont. • New Money • Tuition $83,000 • Equipment $28,000 • Student Persistence $41,070 • Budget cut ($28,280)

35. Initial Allocation Cont. • New FTE’s Allocated by SBCTC • General Enrollments 10 @ $4,900 • Adult Basic Ed. 15@ $6,050 • I-BEST 7@ $9,750 • Transfer Math Sci. 11@ $8,750 • Total $ $304,250

36. Initial Allocation cont. • Other FTE’s (need to apply) • ECE Math & Science (100 sw) • Workforce Hi-demand

38. College Council Recommendations Will Prioritize Unmet needs June 19

39. Budget Challenges • Financial effects of negotiations unknown • Low enrollment “ripple effect” • Food Services deficit • Under funded budgets • PT faculty • Facilities and grounds maint.

40. Budget Challenges, Cont. • Enrollments Still Under Target

41. Questions?